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HomeMy WebLinkAbout11-30-06 November 30, 2006 Page 1 of 3 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session on Thursday, November 30, 2006 at 6:00 PM in the St. Joseph City Hall. Members Present: Mayor Richard Carlbom, Councilors AI Rassier, Dale Wick, Ross Rieke, Renee Symanietz, City Administrator Judy Weyrens Citv Representatives Present: City Finance Officer Leslie Valiant, City Engineer Tracy Ekola Others Present: Ellen Wahlstrom, Bob Wahlstrom Approve Aoenda: Rassier made a motion to approve the agenda as presented; seconded by Rieke and passed unanimously. North east/west Corridor Study: Weyrens stated that the Council has recently discussed the need to amend the contract between the City of St. Joseph and SRF Engineering. SRF has been retained by the City to complete the North east/west corridor realigning CR 2 to CR 75 extending north of CR 75 and east to Ridgewood Road. During the study process it was determined that additional environmental review documents would be needed. Weyrens presented the following summary: Original Contract Amount $ 314,000 Estimated Environmental Costs Contract Balance, 11/06/06 Surplus (Shortfall) 153,910 100,978 $ (52,932) Optional Tasks Design CR 2 as Urban Adding 3rd Alternative (Yellow) Total Additional Costs 8,725 7.109 15,834 Total Contract Surplus (Shortfall) (68,766) Weyrens stated that the contract price could be reduced if the Council does not wish to move forward with the alternatives. The first alternative, (CR 2 Design), is a request of the City Council and EDA. Stearns County has indicated that the proposed design for the realignment will be a rural section with ditches. However, the City has requested that the design be changed to Urban. The future land use plan illustrates the proposed alignment as Highway Business and it is anticipated that persons developing in this corridor will desire curb and gutter. The additional cost, as stated above, will provide the detail as to the additional costs that will be required if the road is constructed with an urban design. The second optional tasks add a third alternative to the northern section between CR 2 and CR 133. In meeting with the public, residents requested that the City consider such a change as the proposed alternative severs the property in half. Moving the road north would allow for greater development opportunities. Rassier made a motion to amend the contract as stated above, increasing the contract with SRF to approximately $ 68,766. The motion was seconded by Rieke and passed unanimously. Summer Recreation - St. Cloud Bovs and Girls Club: Weyrens stated that she has been contact by the St. Cloud Boys and Girls club regarding funding the shortfall for the calendar years 2005 and 2006. The St. Joseph Recreation Association had indicated that they would contribute up to $ 2,500 if the funds were available. Weyrens stated that Council Wick meet with representatives of the Boys and Girls Club regarding the funding shortfall and agreed to take the matter back to the Recreation Association for consideration. November 30, 2006 Page 2 of 3 Wick stated that he has discussed the matter with the Recreation Association at a recent meeting. However, at this time the Association does not have the funds available in the gambling account to pay the shortfall of approximately $ 2,500. Weyrens stated that the St. Cloud Boys and Girls Club are requesting the City cover the debt, as it is their understanding that the Recreation Association is part of the City, even though Weyrens informed them it is a separate entity. The Council discussed whether or not the debt is the responsibility of the City and did not want to create a division between the Boys and Girls Club and the City. Weyrens stated that the approximate shortfall is $ 6,000. The Council discussed the use of the equipment as provided by the City and the need for the program to be self-sufficient. Mayor Carlbom stated that he would like to pursue investing recreation opportunities to include community participation. Such participation would brings groups such as the local schools (both College and Elementary) and Recreation Clubs (St. Joseph and Boys and Girls Club) together to plan a community program. The Council acknowledged that a community program could not in place by 2007. Rassier made a motion authorizing the following expenditure to the St. Cloud Boys and Girls Club: Program 2005 Program 2006 Program 2007 $ 2,500 $ 2,179 $ 1,500 In addition, Rassier encouraged Carlbom to begin discussion on a community recreation program. The motion was seconded by Wick and passed unanimously. Labor Contract - AFSCME: Weyrens reported that the AFSCME Union has rejected the proposed contract with the inclusion of the language regarding new maintenance staff working on weekends. Carlbom stated it was his understanding that AFSCME had agreed to amend the contract which would process the hiring of two additional workers. Until the contract is settled the City cannot move forward with hiring process for the Maintenance Worker. Therefore, Rassier made a motion to reject the proposed AFSME Labor Contract until an agreement can be reached AFSCME regarding the work hours. The motion was seconded by Symanietz and passed unanimously. Labor Contract - LELS: Carlbom reported the he and Rassier have met with representatives of LELS and it appears as a proposed contract will be presented on December 7,2006. Water Treatment Plant - Communications: Weyrens stated that the Staff has had the opportunity to meet with the US Cable, Schwegel Telephone and KLN Distributing regarding the implementation of a phone and security system. Previously the Council was presented information from US Cable offering the installation of a fiber to combine City facilities for phone, computer and security. The installation of fiber to the Maintenance Facility will also provide much needed fiber to the Industrial Park. Currently the industrial park is not serviced with cable due to the cost of extension. US Cable has agreed to charge the City $ 250 per facility per month for the service provided a three year contract is signed. With the execution of the contract, construction costs would not be charged. Weyrens stated that while the system will cost $ 1,250 per month, the City would have better management of the phone system allowing the City Offices to utilize lines that are located in unoccupied buildings. In addition, the City will be able to eliminate two Internet connections and one or two phone lines. It is anticipated that the true cost to the City is approximately $ 800 per month. Wick stated that he has had the opportunity to discuss the proposal with his collegues, to which they indicated the City was receiving a great benefit for the expenditure. Wick stated that he would recommend the City combine the Fire Hall, Maintenance Facility, City Hall, Old City Hall and the Water Filtration Plant. The Council discussed the location of the telephone hub and stated it may be beneficial to locate such in the new water filtration plant. Weyrens stated that she would leave that matter to the consultants. She further indicated that additional staff meetings will be needed before implementation. November 30, 2006 Page 3 of 3 When questioned as to the cost for the system, Weyrens stated that an allowance was established for the security and communication component of the plant and the proposed costs fit within the allowance. The following is an estimate of communication component: Heartland Security - Security System Schwegel Phone KLN Distributing $ 38,000 30,000 18,000 Wick made a motion authorizing the expenditure to extend fiber, connecting the five City Facilities as stated above and authorizing the phone and computer system as requested. The motion was seconded by Rassier and passed unanimously. Adiourn: Wick made a motion to adjourn at 6:50 PM; seconded by Symanietz and passed unanimously. (---~..... ':,..j cZ y !VU-/:j;?/{i \ I J Y Weyrens Admu1 istrator November 30, 2006 Page 1 of 2 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session on Thursday, November 30, 2006 at 6:00 PM in the St. Joseph City Hall. Members Present: Mayor Richard Carlbom, Councilors AI Rassier, Dale Wick, Ross Rieke, Renee Symanietz, City Administrator Judy Weyrens Citv Representatives Present: City Finance Officer Leslie Valiant, City Engineer Tracy Ekola Others Present: Ellen Wahlstrom, Bob Wahlstrom, Michael McDonald, Steve Olson Mayor Carlbom opened the public hearing and stated the purpose of the hearing is to discuss the proposed budget and levy for 2007. Weyrens reminded the Council that action on the budget cannot occur at this time. The Statute requires that at least three days pass between the closure of the public hearing and the adoption of the 2007 Budget and Levy. Weyrens also reminded those present that the budget being discussed is the General Fund Budget and levy requirements for the Debt Service funds. At this time Carlbom turned the floor over the Finance Officer Leslie Valiant. Valiant presented the following information: Real Estate Tax Comparison This table illustrates the impact of the proposed budget on specific home values. This chart assumes that the home value is constant. 2007 2006 2005 2004 2003 Tax % Rate 52.112 48.577 45.051 46.632 48.327 Est Impact Increase Home Valuation 2007 2006 2005 2004 2003 35.35 100,000 521.12 485.77 450.51 466.32 483.27 53.03 150,000 781.68 728.66 675.77 699.48 724.91 70.70 200,000 1,042.24 971.54 901.02 932.64 966.54 88.38 250,000 1,302.80 1,214.43 1,126.28 1,165.80 1,208.18 Summary of Proposed Levy This chart illustrates the proposed budget as preliminarily certified and the proposed tax rate. 2007 2006 2005 2004 Net Tax Capacity 3,047,389 2,630,977 2,198,826 1,862,341 2006 Initial Tax Rate - 48.577% Growth Rate 16.07 19.65 18.07 22.87 Average Growth Rate - 19.165% Reduction Reduction Net Levy on Initial in Tax Levy Initial Amount in Tax Levy Initial Amount Taxable Value Tax Rate & Bud et Tax Rate of Chan e & Bud et Tax Rate of Chan e Revenue 988,56 32.440% 957,611 31.424% -1.016% 927,611 30.440% -2.000% Bond 1998 2,50 0.082% 2,50 0.082% 0.000% 2,50 0.082% 0.000% Bond 1999 29,86 0.980% 29,86 0.980% 0.000% 29,86 0.980% 0.000% Bond 2002 47,00 1.542% 47,00 1.542% 0.000% 47,00 1.542% 0.000% Bond 2003 126,62 4.155% 126,62 4.155% 0.000% 126,62 4.155% 0.000% Bond 2004 95,50 3.134% 95,50 3.134% 0.000% 95,50 3.134% 0.000% Bond 2005 173,00 5.677% 173,00 5.677% 0.000% 173,00 5.677% 0.000% Bond 2006 125,00 4.102% 125,00 4.102% 0.000% 125,00 4.102% 0.000% rotal 1,588,06 52.112% 1,557,10 51.096% -1.016% 1,527,10 50.112% -2.000% November 30, 2006 Page 2 of 2 At this time Mayor Carlbom opened the floor for comments and questions. Carlbom requested that those present limit their comments to five minutes. Steve Olson of 312 Iris Lane East spoke in opposition to the proposed budget. Olson stated that based on his property tax statement his taxes will increase 13% of which 7.25% represents an increase in market value. Olson questioned why the taxes continue to increase and if the Council can reduce the budget/spending. Mike McDonald of 213 - 13th Avenue SE questioned the proposed increase in taxes. McDonald stated that over the last two years his taxes have increased approximately 14.5% and stated the Council needs to looking at spending policies and where cuts can be made. He recognizes that difficult decisions must be made but he has been in those types of situations and it is never easy. He stated that he is unaware of the type of benefits the City offers, but it is his understanding that the largest portion of the budget is related to such. Ellen Wahlstrom of 1314 East MN Street objected to the proposed tax levy and stated that many of the residents live on fixed incomes and it appears, as the trend is to keep increasing taxes. Wahlstrom stated that if the rates keep increasing residents could be taxed out of their homes. Mike McDonald of 213 - 13th Avenue SE questioned what if any reserve balance the City is carrying. Weyrens stated that the Council has adopted a policy whereby the minimum reserve balance will be equal to six months of expenditures. At this time the City does have a reserve equal to six months. McDonald questioned whether or not the City could use one month's reserve to help offset the proposed increase. Carlbom stated that he would caution reducing the reserve balance as it may have ramifications when bonding for future projects. Weyrens agreed to consult with Bond Counsel to determine the affects of reducing the reserve balance. Weyrens stated that it is difficult to determine the exact affect of the proposed increase as most residents also experience an increase in market value. If home values were stagnant the increase would simply be a multiplication of the tax rate. Wahlstrom questioned who determines the market value to which Weyrens replied Stearns County. Minnesota Statutes sets forth the guidelines for determining market value. The City Assessor annually must review the property and the property value should be within 10 percent of the selling price/market value. Most residential homes experienced an increase of between 5 and 7 percent. Therefore, when reviewing the proposed increase the market value must also be reviewed. Jane Reber of 1314 East MN Street requested the Council review the proposed budget and consider the impact to the residents of St. Joseph. Reber stated that as a retired resident it becomes difficult with increasing taxes and fees. Rassier stated that he believes the Council should re-evaluate annually fees and services and explore joint ventures with surrounding Cities. Carlbom stated that the City currently meets with the Area Cities on a regular basis to discuss any collaborative efforts. Carlbom questioned the Council if they wished to close the public hearing or leave it open until December 7,2006. Weyrens reminded the Council that if the hearing is kept open a decision cannot be made until three days have passed from the time the hearing has closed. Symanietz made a motion to continue the Truth and Taxation Hearing until 7:00 PM, December 7, 2006 so that additional information could be obtained. The motion was seconded by Wick and passed unanimously. r--'''' . ....; ,i. ',' J./ " '~. i ///'.,1/. /. / / d t- !,e/:!/ / - ~ y >J'->- l/{/~ /jUd Weyrens Adrhinistrator